You may consider starting a business for a variety of reasons. Perhaps you suffer from low job satisfaction and would prefer to earn for yourself rather than your employer. Or maybe you’d like to explore new challenges and be your own boss.
Regardless, there are multiple avenues to explore, each with their own set of advantages and disadvantages. Of these, the rental business is perhaps the most popular option. Here are some good reasons why.
#1 Steady Income
After you’ve bought the right property, crunched the numbers, and matched with the right renter, you are almost certainly guaranteed a monthly cheque. Very few other businesses can yield a steady income with such surety so early into the enterprise.
#2 Tax Deductions
Depending on local regulations and your circumstances, you could be entitled to many tax deductions, including interest on your mortgage, maintenance costs, depreciation, travel expenses, insurance premiums, professional services, and more.
#3 Smaller Time Investment
Most new businesses require so much time that it’s hard to continue a regular job. On the other hand, once you’ve laid the initial groundwork and settled on a system, a rental business should allow you to do other work. You can either tackle your property management duties after work hours or hire a professional for a fraction of what you earn.
Thanks to modern technology, your time is saved in other ways too. Traditionally, you may have found and screened a renter through a real estate agent in an expensive and time-consuming process. Now, you can save resources by using online marketplaces. For example, if you use rhenti to find a renter for your apartment – you are matched with a good renter who’s been thoroughly screened. What’s more, the platform manages all financial aspects of the transaction, freeing up more of your time to maximize your earnings.
#4 Another Asset
Life is uncertain. You never know when you’ll run into financial issues. Owning a property means you have collateral to offer to a bank in case you need to apply for a loan. Moreover, you can always liquidate the asset in case of a serious emergency. And in a housing market where property value is gaining steadily, chances are you’ll still make a profit. Alternatively, once you are done with the rental business, you have the choice to keep your property as another home.
One of the advantages of being a rental property owner is flexibility. Unlike other businesses, it’s easier to take a breather or even stop completely. For instance, many people buy properties with the intention of renting them out until they are ready to move in. This allows them to meet any extra expenses while they tie loose ends. Some owners even spend years traveling or working overseas while their rental is in the care of a property manager.
These are just a few of the advantages. If you remain organized and astute, you can profit from the rental property business in more ways than one.